MillerKnoll shares drop 6% on weak Q1 results, soft guidance

ZEELAND, Mich. – MillerKnoll Inc. (NASDAQ:MLKN) shares fell 6% in after-hours trading Thursday after the furniture maker reported first quarter earnings and revenue that missed analyst expectations, while also providing disappointing guidance.

The company posted adjusted earnings per share of $0.36 for the quarter ended August 31, falling short of the $0.43 consensus estimate. Revenue declined 6.1% YoY to $861.5 million, below the $898.88 million analysts were expecting.

MillerKnoll’s Q1 sales were impacted by continued softness in the housing market affecting its retail segment. However, the company saw some positive signs, with orders up 2.4% YoY to $935.9 million, led by 5.2% growth in Americas Contract orders.

“MillerKnoll finished the first quarter with momentum and order growth,” said CEO Andi Owen. “Demand is improving and our Contract business is seeing the return of larger projects in the Americas and Asia.”

For the second quarter, MillerKnoll expects revenue between $950 million to $990 million and adjusted EPS of $0.51 to $0.57, below the $0.61 per share analysts were forecasting. The company maintained its full year adjusted EPS guidance of $2.20.

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